The 'I Am Number Four' director is reportedly set to helm the third instalment of the action franchise starring Dwayne Johnson after entering into direct negotiations with Paramount, reports Deadline.

Caruso will be the third director to take on the franchise after Stephen Sommers helmed the first picture 'G.I. Joe: The Rise of Cobra' (2009) and Jon M. Chu directed its sequel 'GI Joe: Retaliation' (2013), which took $372 million at the global box office.

Johnson is returning to the franchise after starring in the second film alongside Channing Tatum and Jonathan Pryce.

The 42-year-old actor also entered into talks last month to appear in the new Disney movie 'Moana' - which will tell the story of an adventurous teenager who sets out on an impossible-looking mission to fulfill her ancestors' quest.

Johnson - who's previously starred in 'Pain & Gain' and the 'Fast & Furious' franchise - is wanted to voice the part of a demi-god known as Maui.

Meanwhile, Caruso is currently working on 'The Disappointments Room', a drama penned by 'Prison Break' star Wentworth Miller and starring Kate Beckinsale and Lucas Till.